Which of the following is NOT a reason for companies to pursue FDI?

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Companies often pursue Foreign Direct Investment (FDI) for a variety of strategic reasons, which typically include addressing the barriers to exporting, increasing market influence, and minimizing production costs.

While access to better logistical networks can indeed be a benefit of FDI, it is not typically a primary reason companies initiate such investments. More often, logistical advantages are secondary outcomes that companies may experience once they have established a presence in a foreign market. The primary motivations usually focus on overcoming trade barriers, gaining a competitive edge in terms of market power, or reducing costs associated with production and operations, such as labor or materials.

In contrast to the other listed reasons, which directly relate to strategic business objectives and market interactions, improved logistical networks tend to be more of a consequence or an incidental benefit of having a direct investment in a foreign country rather than a driving motivation behind the decision to engage in FDI.

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